The meeting was called to order at 6:00
P.M. by Mayor Gardiner at Fred Hesse Community Park, 29301 Hawthorne Boulevard,
and was immediately recessed to closed session. At 7:00 P.M., the meeting
was reconvened for regular session.

Mayor Gardiner advised that a free composting
workshop is scheduled at Hesse Park on Saturday, August 14, 2004, 10:00
A.M.

Councilman Long mentioned that he was
not in attendance at the last Council meeting because he was on vacation;
stated that he attended various stages of the Tour de France; and he presented
to the Mayor and Councilmembers small, symbolic gifts from that event.

Mayor Gardiner thanked Councilman Long
for his thoughtfulness and generosity.

RECYCLE DRAWING:

Mayor Gardiner announced the names of
the three recyclers of the month winners, two from the first meeting in
July and one from the last meeting in July: Scott Smith, Alex Bertolina
and John Kashe, all who will receive a check for $250, which represents
a year of free refuse service. He encouraged everyone to recycle and advised
that a new batch of cards has been placed inside the drawing container.

APPROVAL OF AGENDA:

Councilman Stern moved to approve the
Agenda as submitted. Without objection, Mayor Gardiner so ordered.

PUBLIC COMMENTS:

Jerry Duhovic, 32415 Nautilus Drive, commented
on his opposition to placing a number of "Do Not Enter" and
other traffic-related signs within the view of his home and other homeowners
living near East Vista Park, above Ocean Trails, on Palos Verdes Drive
South. He explained that a number of signs have been erected to warn motorists
of imposing traffic and to direct motorists to the scenic turnout areas.
He stated that he has conferred with staff on this matter; that he had
received a letter from Director Allison and Deputy Director Pfost in which
they provided some analysis for the location of these signs. Mr. Duhovic
stated that there are currently four points of conflict in this intersection
and that the City is adding a fifth with this parking lot for East Vista
Park; and stated that there are two additional scenic outlooks/parking
lots -- one to the east and one to the west, both of which he believes
could have easily been placed across from an intersection. He stated that
the one to the east, which is across from the large homes in the Sea Cliff
area, is directly in the middle between Sea Cliff Drive and Palos Verdes
Drive East; and that he believes the scenic parking lot at the Abalone
Cove area should have been placed elsewhere.

With regard to the Abalone Cove scenic
turnout, just before Wayfarer’s Chapel, Director Allison explained that
there are other overriding issues that were taken into consideration when
trying to figure out where to place these traffic signs, such as the problems
with the topography and terrain in the landslide area and the sewer pipes
that are located above ground. With regard to the one near Ocean Trails,
he indicated that it does not line up with the intersection at Sea Cliff
and stated that he would need to research the placement of that signage
to give Council a better answer as to why that site was chosen. Director
Allison stated that what is important to Public Works in the placement
of these signs is that they must be close to the park and where motorists
can easily view the signage.

Mr. Duhovic noted his understanding that
the City specifically graded the land to accommodate the placement of
the signage, that it was not necessarily dictated by the topography.

Mayor pro tem Clark asked staff if they
can envision any flexibility with the movement of these signs and yet
preserve the Public Works concept for adequate placement.

Director Allison stated that he believes
there is room between Concord, that it could possibly be moved to the
east; but he expressed his belief that this would not be a good solution.
He pointed out that the highest volume of traffic is on PVDE; stated that
Public Works staff is trying to minimize the number of driveways onto
PVDE; and explained that another location would be added in a short period
of time and be too close to the deceleration lane into Ocean Trails. He
stated that it could be done, but that the traffic engineer would not
be in support of that proposal.

Mr. Duhovic noted his concurrence that
moving it to the east would not be a feasible solution, and he suggested
that it be moved further to the west.

Director Allison stated that moving it
further to the west would not be advisable because its placement would
be further away from the park.

Councilman Wolowicz questioned the status
on the plans for painting the center lines for the proposed island and
questioned if the painting could accommodate a wider path.

In response to Councilman Wolowicz’ inquiries,
Director Allison noted that it was the preference of the Sea View residents
for there to be no island between Concord and Forrestal, believing that
no island would achieve a safer means of ingress/egress; advised that
the road is currently paved with asphalt and that he is not aware of it
being striped at this time; and explained that the painting could allow
for a wider width to accommodate more traffic.

Mr. Duhovic noted his appreciation of
Director Allison’s quick responsiveness to his emails and phone calls.

Mayor pro tem Clark suggested that Public
Works staff meet with the Sea View homeowner’s leadership to provide them
with an overview of the overriding issues that staff had to take into
consideration when choosing a location for the signage and the location
of the scenic turnouts; and he asked that this issue be returned to Council
if there are significant issues that arise in the future.

Larry Sandoval, representing the American
Cancer Society, invited everyone to participate in the first annual RPV
Relay for Life event, a 24-hour team event to honor cancer survivors,
those who continue to fight this disease, and to remember those who have
died from the disease. He stated that the purpose of this event is to
raise awareness and to raise funds for a cancer cure. He explained that
there would be teams of 8 to 15 people who will take turns walking or
running around the high school track over a continuous 24-hour period
to help raise funds for the event. Mr. Sandoval added that there would
be a survivors’ lap event and a luminary ceremony for those who continue
to fight the disease and for those who have passed. He stated that the
event would take place at Peninsula High School starting August 13, 2004,
at 6:00 P.M. to August 14, 6:00 P.M.

Lois Larue, 3136 Barkentine Road, thanked
Mr. Redfield for taking her home from some of the City Council meetings;
and thanked Mayor Gardiner and City Manager Evans for their offers to
take her home from the City Council meetings. She urged the public to
pick up copies of the additions/revisions and amendments to agenda.

CITY MANAGER REPORTS:

None.

OLD BUSINESS

Mayor Gardiner noted that old business
is reflected on the City’s website.

At this point Councilman Wolowicz requested
removing Agenda Item No. 7 from the Consent Calendar, presentation of
estimated general fund reserves with staff reports that include a request
for a budget adjustment and monthly financial reporting - recommendation
of ad hoc committee.

Councilman Stern moved, seconded by Councilman
Wolowicz, to approve the Consent Calendar as amended. The motion carried
as follows:

AYES: Clark, Long, Stern, Wolowicz,
Mayor Gardiner

NOES: None

ABSENT: None

Motion to Waive Full Reading.

Adopted a motion to waive reading in full
of all ordinances presented at this meeting with consent of the waiver
of reading deemed to be given by all Council Members after the reading
of the title.

Approval of the Minutes: May 18, Regular
Meeting, and July 16, Special Meeting. (301)

Authorized the Mayor and the City Clerk
to execute a Non-Exclusive Franchise Agreement for Commercial Refuse Collection
and Disposal Services with CalMet Services, Inc., to be effective through
December 31, 2004.

Border Issues Status Report. (310)

Reviewed the status of border issues and
provided direction to the City Council Committee and Staff, if necessary.

Amendment to Agreement between the City
and the Peer Review Panel Reviewing the Ocean Trails Project. (1411)

Authorized the Mayor and the City Clerk
to execute the proposed First Amendment to Agreements for Professional
Services between the City and the Peer Review Panel Members.

Rejection of Bids Received for Storm Drain
Project. (1405 x 1204)

(1) Rejected all bids received on July
14, 2004 for the rehabilitation of storm drains in Rancho Palos Verdes;
and, (2) Requested staff to revise the project plans and re-advertise
the project.

Resol. No. 2004-64: Register of Demands.

ADOPTED RESOL. NO. 2004-64, A RESOLUTION
OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES ALLOWING CERTAIN
CLAIMS AND DEMANDS AND SPECIFYING FUNDS FROM WHICH THE SAME ARE TO BE
PAID.

Presentation of estimated General Fund
Reserves with staff reports that include a request for a budget adjustment
and monthly financial reporting - recommendation of ad hoc committee.
(602)

The staff report of August 3rd
recommended the following: (1) Staff will attach the proposed Schedule
of Estimated General Fund Reserves (see Exhibits A and B) to every staff
report that includes a request for a budget adjustment; and, (2) Staff
will prepare a monthly City Manager report highlighting notable revenue
and expenditure trends and variances to budget.

Councilman Wolowicz stated that he, Mayor
Gardiner, City Manager Evans, Director McLean, and Finance Manager Downs
got together to help formulate this report; he thanked Mayor Gardiner
for his participation in this effort; and explained that he requested
this effort to take place in order to provide financial information to
City Council in a non-burdensome manner that is both reasonable and practical
to read. He advised that most municipal bodies do not routinely receive
a standard set of financial statements each month, but more on an annual
basis; explained that it is important for this body in its financial management
to see changes as they are likely to occur, to see trends and single items
that are unusual; that when there is movement of numbers, changes with
the budget, new revenues or increases of fees, all these have an impact
on revenues and expenditures; and that, frequently, this body does not
get a chance to see all of that information. He pointed out that it is
not his objective to inundate staff, but to provide the Council with some
type of a score card it can look at during the course of the year so that
Council can make more informed decisions in its consideration of managed
funds. He stated that while this package still does not provide a traditional
set of financial statements, it greatly improves the amount of financial
information provided to make the Council more aware of the changes in
the budget. He thanked and commended Director McLean and his staff for
assisting him in this process and keeping the information practical, concise
and for developing a helpful tool that can be used in the future.

Councilman Wolowicz moved, seconded by
Councilman Stern, to concur with staff recommendation. There being no
objection, Mayor Gardiner so ordered.

Staff recommended that this matter be
continued again to October 5, 2004.

Andrew Mottram, RPV, noted his delight
with the reduction in grading; but stated that he is still concerned with
excavation activities in terms of how it might affect his property; and
he mentioned that staff did advise him of some assurances that are in
place to protect his property – questioning whether his property will
be covered if cracks result as a consequence of the excavation activities.
Mr. Mottram stated that the most concern to him is the impact of Lot No.
12 on his view; and he noted his concern with potential future increases
in the ridgeline because of raising the pad height.

In response to Mr. Mottram’s inquiry,
Senior Planner Mihranian explained that there is a condition for the tract
map that a bond must be posted for a Certificate of Insurance, demonstrating
that the applicant has obtained a general liability insurance policy in
the amount of not less than $5 million – adding that this has been done
and that a copy of the insurance policy is on file with the City. With
regard to the speaker’s concern with the ridgelines, especially that of
Lot No. 12, he indicated that Lot 12 is not proposed to be raised and
that a condition runs with the property, and that if a future request
to raise this lot were to be proposed, it would have to go through the
public hearing process.

City Attorney Lynch explained that the
point of the insurance is to cover the grading of construction; and stated
that she has not seen a copy of the policy and that at this time; she
cannot say what coverage has been provided.

Mayor Gardiner expressed his desire that
a copy of this insurance policy be presented so that it is clear the policy
covers what the City is asking for; and he asked that staff research whether
there is adequate insurance to cover any damages. He stated that if the
policy contains exclusion about possible damages, that this matter is
brought to City Council for review.

John Aube, 7420 Alida Place, RPV, with
the aid of photographs depicting the elevation above his property, highlighted
his concerns with the excavation activities so close to his home and noted
his opposition to the planned elevations, expressing his belief that this
is essentially placing his property in a pit; advised that as a result
of the excavation activities, his property now has numerous cracks on
the northerly perimeter wall, cracks in the driveway, patio, garage and
inside the house; and he urged the City to allow his property to be at
the same elevation as that of the one behind his property, which is consistent
with the properties on Alida Place. He addressed his opposition to the
dramatic reduction in his views because of this project. He stated that
according to the City Attorney’s statement, since the applicant is asking
for a change in elevation at this time, all elevations now come into question.

Mr. Aube noted his understanding that
these elevations were approved in 2001; however, after three years of
being approved, the plans were recorded only four months ago.

Senior Planner Mihranian explained for
Councilman Wolowicz that Mr. Aube’s property was originally a split-level
lot; and that when the home was proposed, there was a grading application
to lower it to the elevation that is depicted in the photographs to allow
a larger structure. He added that when the property was originally graded,
the elevations would have been relatively similar to what is proposed
by the current applicant.

In response to Councilman Wolowicz’s inquiry
regarding the grading, Senior Planner Mihranian explained that Lot No.
3, which is directly behind Mr. Aube’s property, was raised from Palos
Verdes Drive West, working its way upward; and that the lots were terraced,
raised, but that each lot is relatively at the same elevation as the adjacent
properties on Alida Place, except for this particular lot.

Mr. Aube stated that when one looks at
the original elevations, the original contour of the land prior to the
excavation process was very similar to his backyard contour when he purchased
this property; and expressed his belief that these contours which are
reflected in the photographs are unnatural and that they’re not in compliance
with the standards the City approved for this project.

Mayor pro tem Clark asked Mr. Aube if
he inquired of City staff what would happen with the neighboring land
when he purchased his property in October 2003.

Responding to Mayor pro tem Clark’s question,
Mr. Aube stated that he had contacted City planning staff, a Mr. Ryan
Luckert, who stated the elevations would be similar with the elevations
that were currently in place.

With regard to the house that is now 18
feet above Mr. Aube’s patio, Mayor Gardiner asked if these 18 feet is
due to the prior owner lowering the pad and how much of it is due to buildup.

Senior Planner Mihranian, in response
to Mayor Gardiner, stated that he would have to research that information
before providing an answer and that he will bring that information back
to Council.

Sid Croft, representing the applicant,
expressed his concurrence with staff recommendation to continue this matter
in order to gather more facts to respond to the issues of concern.

Mr. Esfahani, the project developer, expressed
his belief that the angle the photographs depict are misleading and misrepresent
the actual grading levels. He expressed his belief that Mr. Aube is misinformed.

Mayor pro tem Clark moved, seconded by
Councilman Stern, to continue this public hearing to the City Council’s
October 5, 2004 meeting.

The Mayor and Council indicated an interest
in having site visits to get a clearer picture of the issues in this case
and asked that staff facilitate the scheduling for Councilmembers to visit
the site so as not to create a Brown Act violation.

There being no objection, Mayor Gardiner
so ordered the continuance of this matter.

CITY COUNCIL ORAL REPORTS:

Councilman Long stated that he attended
the 50th Anniversary celebration of the Los Angeles Air Force
Base in El Segundo on Friday, July 30th.

Councilman Stern noted the following events/meetings
he attended:

Advised that he nominated Mayor pro tem Clark to serve
as the board member of the League of California Cities;

July 21st, attended the Joint Powers Insurance
Authority (JPIA) annual meeting at the headquarters in La Palma, noting
that he has financial information that is available for review. He added
that the board was re-elected;

Participated in the Open Space Acquisition conference
calls, noting that things are still moving along and that there exists
a lot of enthusiasm.

Mayor Gardiner noted the following events/meetings
he attended:

Friday, July 30th, attended the 50th
Anniversary celebration of the Los Angeles Air Force Base in El Segundo
and stated that there were some interesting speakers at this event;

Not being able to attend all events/meetings required
of a Mayor, he thanked Mayor pro tem Clark for his willingness to step
in on his behalf.

Mayor pro tem Clark thanked Councilman
Stern for his nomination to the board of the California League of Cities.
He highlighted the history of the California League of Cities; and added
that over the last five years, it has become a strong force in what it
has been accomplishing for cities throughout California. He expressed
his belief that Chris McKenzie is the main driving force behind its success.

Last week on behalf of Council, Mayor
pro tem Clark stated that he represented the City at the League’s Annual
Mayors and Councilmembers Executive Forum in Monterey; noted that one
of the things most obvious with the timing of the conference was the negotiations
on the state budget; and explained that this was the first time ever the
League, in concert with the California Counties Association, had a seat
at the negotiations table. He stated that Chris McKenzie briefed the 500+
elected officials at the forum on what took place in terms of final negotiations
and what came out of those negotiations, which allowed the League to preserve
a ballot initiative, now sponsored by the Governor and state legislature
last week, to constitutionally protect local source of revenues in the
future; in return, he stated that cities and counties would contribute
$1.3 billion to the state budget over the next two fiscal years. He stated
the legislature signed on only after coming to the agreement that in times
of economic emergency declared in the state, they could suspend the constitutional
protection twice in a decade and potentially borrow money from the cities,
paying back with interest; advised that after an economic emergency being
declared, it would take a 2/3rds’ vote of the legislature to be able to
take some of those revenues from the cities and counties, borrowing it,
and paying it back with interest before the legislature can do it for
the second time within that 10-year span. He stated that the Governor
himself attended the conference on Thursday, thanking the League and member
cities that helped to sustain the negotiations with the legislature. He
advised that some of the issues discussed at the conference were new strategies
for hiring city managers, neighborhood traffic calming, promoting public
confidence, cities’ contracting practices, creating great neighborhoods
dealing with density – expressing his belief that in the near future,
this City will need to address pocket infill development. Mayor pro tem
Clark encouraged his colleagues to get involved in the League’s activities.

REGULAR NEW BUSINESS:

Resol. No. 2004-65: Ridgegate Traffic
Concerns. (1502 x 1204)

The staff report of August 3rd
recommended the following: (1) Establish four-way stop controls, marked
crosswalks and associated pavement markings at the intersection of Ridgegate
Drive and Ridgehaven Court/Ridgepoint Court; (2) Establish four-way stop
controls, marked crosswalks and associated pavement markings at the intersection
of Ridgegate Drive and Ridgecove Court; and, (3) ADOPT RESOLUTION NO 2004-65,
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES ESTABLISHING
FOUR-WAY STOP CONTROLS AT THE INTERSECTIONS OF RIDGEGATE DRIVE AND RIDGEHAVEN
CT/RIDGEPOINT COURT AND RIDGEGATE DRIVE AND RIDGECOVE COURT.

Councilman Stern moved seconded by Councilman
Wolowicz, to concur with staff recommendation.

Councilman Wolowicz complimented staff
on working with the residents on this matter and requested a copy of the
City’s neighborhood traffic calming program description and to provide
a distinction on the issues regarding the collector streets.

There being no objection, Mayor Gardiner
so ordered.

Regulation of septic systems on private
properties. (1204)

The staff report of August 3rd
recommended the following: (1) Receive an update from the Director of
Public Works regarding current activities of the Regional Water Quality
Control Board regarding septic systems on single-family lots; and, (2)
Authorize the Director of Public Works to submit a letter to the Regional
Water Quality Control Board indicating that there is not adequate information
currently available to enter into a Memorandum of Understanding regarding
the regulation of septic systems.

City Manager Evans stated that the letter
is to notify Council that the City is passing the deadline imposed by
the Regional Water Control Board.

City Attorney Lynch explained that staff
believes it is not appropriate to proceed at this time because there is
insufficient information about what the County is actually going to do.

Councilman Stern moved, seconded by Councilman
Long, to concur with staff recommendation. There being no objection, Mayor
Gardiner so ordered.

Request to Rename Ocean Trails Drive.
(1411)

The staff report of August 3 recommended
that Council consider the request from the Trump Organization to rename
Ocean Trails Drive to Trump National Golf Club.

Staff indicated for Councilman Long that
this item could be tabled at any point in the discussion.

Mayor pro tem Clark noted that it was
Mr. Trump’s intent, if he retained the property, to rename it; advised
that he suggested to Mr. Trump that he consider renaming it Trump National
at Rancho Palos Verdes or Palos Verdes; and noted that Mr. Trump stated
that most people do not know where Palos Verdes is located. Mayor pro
tem Clark stated that he explained to Mr. Trump that many peninsula residents
have been offended with his plans to not identify the location as Rancho
Palos Verdes or Palos Verdes and instead to identify it as Los Angeles.
He asked Mr. Kaplinski if he knows whether Mr. Trump is willing to reconsider
using Rancho Palos Verdes or Palos Verdes in that new title.

Jeff Kaplinski, representing Trump National,
stated that Mr. Trump had indicated to him his intent to use Trump National
Los Angeles in the title, not Rancho Palos Verdes; explained that a more
familiar name is necessary to identify the location of the golf course,
but that Mr. Trump had indicated he would not rule out that request at
this time.

Councilman Long moved, seconded by Councilman
Stern, to table this item. Hearing support only from Councilman Long and
Councilman Stern, Councilman Long moved to suspend the rules to allow
discussion of the motion to table this item. Without objection, Mayor
Gardiner so ordered.

Councilman Long stated that he moved to
table this matter because the golf course has yet to be completed and
opened, that he believes this request is premature, and that Mr. Trump
has some issues to work out with the City and the School District; and
stated that when the course is open, he believes that would be an appropriate
time for Council to re-examine the request.

Councilman Wolowicz stated that he is
concerned with the ultimate longevity of the ownership of the course and
whether the City may have to again change the name of the street.

Mr. Kaplinski stated that the Trump organization
plans are under way to change the name of everything associated with this
project and that they would like this to occur between now and before
the course is open. He noted his expectation that the course will be open
just after the first of the year.

Councilman Stern noted his concurrence
with Councilman Long’s statements; and asked if an application had been
submitted for the driving range.

Mr. Kaplinski stated that an application
for the driving range has yet to be submitted because they are proactively
seeking to have the proper environmental studies conducted for this site.

Noting a recent article in the Daily
Breeze, Councilman Stern questioned if Mr. Trump is under the impression
that the application had already been submitted to the City.

In response, Mr. Kaplinski stated that
there was a permit application submitted originally; however, City staff
sent a letter stating that a different approach would have to be taken;
and advised that the Trump organization is not sure if they agree with
that approach and that they are now waiting to come up with a design that
they feel comfortable with.

Referring to the same newspaper article,
Councilman Stern asked Mr. Kaplinsky if a permit application had been
submitted for the bungalows.

Mr. Kaplinski stated for Councilman Stern
that no application for the bungalows had been submitted.

Mayor Gardiner spoke in favor of tabling
this item, but he expressed his desire that the two sides cooperatively
work together in looking at the renaming.

Mr. Kaplinski discussed the possibility
of making the roadway a private street.

Councilman Long moved, seconded by Councilman
Stern, to renew the motion to table this matter. There being no objection,
Mayor Gardiner so ordered.

RECESS AND RECONVENE

Mayor Gardiner recessed the meeting at
8:35 P.M. The meeting was reconvened at 8:41 P.M.

Very High Fire Hazard Severity Zones.
(1203 x 603)

Senior Planner Fox presented the staff
report and the recommendation to review the information regarding Very
High Fire Hazard Severity Zones (VHFHSZs) in the City and on the Palos
Verdes Peninsula, and provide direction to staff to work with the other
Peninsula cities to develop more appropriate boundaries for these zones.

Councilman Long reiterated his concern
that some homeowners in his area and on Flaming Arrow Drive had been denied
homeowner’s insurance coverage because of their proximity to what has
been referred to as a high fire hazard zone.

Councilman Stern stated that other than
more clearly delineating those areas that should be in or out of the high
fire hazard zone, he questioned what the practical effect would be, such
as, would it lead companies on a more rigorous basis not to insure people
as a result of the City’s research.

Senior Planner Fox stated that staff does
not have a good sense of this matter yet and that staff would like to
do more research with the insurance companies to find out what the effect
would be.

Councilman Stern stated that it is not
a bad thing to require added fire protection on the Peninsula and extra
precautions, stating that this is helpful for the safety of the residents.

Councilman Long addressed his concern
that if insurers are going to treat this area as a very high fire hazard
area for their underwriting purposes, it may force some homeowners into
buying substandard insurance. He noted that on the other hand, depending
on how these designations play out and what effect they have on developed
areas as opposed to undeveloped areas, the residents may be able to lessen
a problem in acquiring insurance.

Councilman Wolowicz questioned how this
designation could have happened without the City’s knowledge and asked
that the mapmaker be contacted to determine how this conclusion was reached.

Councilman Stern pointed out that most
of the residents have been able to obtain insurance at an acceptable level
and asked that research with the insurance companies be done on a low-key
basis – noting his concern that under the guise of fine-tuning this, it
may create a larger problem than what currently exists.

Councilman Long explained that this is
not just an issue of whether there is competition, but that there could
potentially be problems with the sale or transfer of property in a high
fire hazard zone and the requirements for disclosure; and he suggested
that staff consider consulting with the real estate community about it,
and if it becomes an issue, what impact that rating might have.

Mayor Gardiner echoed Councilman Stern’s
concerns.

City Attorney Lynch reiterated staff’s
desire to further research this matter.

Councilman Long echoed the concern about
keeping the research low key.

City Attorney Lynch suggested that no
action be taken at this time other than to receive and file staff report
and stated that she and staff will continue in their research of this
matter.

Mayor Gardiner stated that one of the
options should be to concur with the Fire Department’s position.

Councilman Long moved, seconded by Councilman
Stern, to receive and file staff report; to direct staff to proceed with
additional investigation and bring the matter back to Council, as staff
feels it appropriate, with recommendations and alternatives based on this
evening’s discussion. No objection was noted.

City Council Badges. (306)

Councilman Stern presented staff report
and the recommendation that (1) The City Council should adopt a policy
eliminating the City Council badges; (2) If City Council members believe
that it is desirable to have a medallion of some sort, I suggest that
the City have a medallion designed like our City logo; and, (3) Said medallion
should not be made to look like a law enforcement officer's badge of any
sort.

Councilman Stern explained that he asked
for this item to be placed on the agenda; advised that the issued badges
are very similar in design to the Sheriff’s badges, but noted that the
badges are different in that they reflect "City Official for Rancho
Palos Verdes"; and explained that from his perspective, there is
no legitimate reason for Council to have these badges. He stated that
Council has also been issued by the Sheriff’s Department a pictured identification
containing their signature, which he believes can easily be used during
an emergency or disaster. He provided a history on the badges. He pointed
out that the badge does not provide any identification, that it bares
no name or picture; and reiterated his belief that the badges serve no
valid purpose in terms of identification of the official. Councilman Stern
stated that he is bothered by some of the unfortunate misuses of these
badges, highlighting a series of articles and letters that ran in the
Daily Breeze, where a Councilman from Redondo Beach improperly
flashed his badge when he became angry at a disabled motorist in his city;
and advised that the Councilman admitted to letting his temper get the
best of him and that he acted irresponsibly when he displayed his ceremonial
badge. He pointed out that a former Council member from RPV had inappropriately
used the badge. He stated that given the fact that no one can keep people
from losing their tempers and acting irresponsibly and that given the
lack of justification for having this type of emblem, he suggested that
RPV do away with the Councilmember badges. Because he understands that
some people would like to have some sort of medallion to identify the
stature of position, he stated that a nicely designed emblem/medallion
could be designed to show the City logo and stated that it would serve
the same ceremonial purpose, and that it would eliminate the potential
for misuse of these badges. He asked that the City adopt a policy to eliminate
the use of the badges and that if Council desires, that a medallion be
designed, but that the medallion not look at all like the law enforcement
badges.

Mayor pro tem Clark stated that the badges
are part of the identification given out to publicly elected officials
to use in times of emergency or disaster, badges of elected officials
that resemble law enforcement to facilitate the elected official being
able to cross police lines and get to a disaster or emergency in their
community. He stated that the badges are not unique to this county, but
that almost every municipality distributes badges to the elected officials
for these purposes. He pointed out that in today’s hostile environment,
these badges are essential. While there have been a few incidences in
other municipalities, Mayor pro tem Clark stated that he is not aware
of any misuse of the badges in this City with this Council; that if Council
is to develop policy based upon the lowest common denominator of behavior,
then it ought to look at taking away Council’s ability to enter into and
authorize contracts – pointing out that there have been elected officials
in the South Bay area that have gone to jail for malfeasance. If there
was an issue in this town, he stated that it would be addressed; he pointed
out that this is a time-tested tradition of issuance that should not change;
and he stated that he sees no need and has no desire to change this tradition.

Mayor Gardiner stated that because the
misuse has occurred in a very small number of cases compared to the number
of badges that have been distributed, he would not support doing away
with the badges; but stated that he would prefer an approach to establish
some protocols for proper badge use. He stated that the badge is a secondary
identification to the identification card – pointing out that false identification
cards can easily be manufactured; and noted his belief that this combination
works well in emergencies.

Councilman Long stated that he has found
little occasion to use the badge; noted that he understands the concept
that a badge can be a useful secondary reinforcement to the identification
card, but stated that he is not sure of the answer to the more specific
question: does the badge have to be so closely similar to a law enforcement
badge to achieve whatever the purposes are that the City wants it to achieve.
Councilman Long advised that he has used the badge on two occasions: once
to get the hotel tax removed in Sacramento when he was there on City business
and once when he was running late for a flight where he was on a trip
partly for City business. He explained that while flashing his badge at
the airport got him ahead in line, it also caused some confusion when
he continued to board the plane, that he was questioned about carrying
any weapons. In conclusion, he stated that while he can see the advantages
of having a badge that in an emergency can expedite him getting through
lines, he is not sure he sees a benefit to it being confusingly similar
to a law enforcement badge as opposed to being merely a secondary accompaniment
to City Council identification.

Councilman Wolowicz stated that he spoke
about this subject with four current or retired police chiefs in the South
Bay area, all who expressed an opinion that the badges were of benefit.
He stated that he had occasion to use the badge to enter a gated homeowners
community to attend a meeting. He expressed his belief that the badges
help Councilmen fulfill their role during an emergency. He noted his support
that a protocol sheet be distributed to everyone who receives a bad, which
says that the badge is not to be misused and to always be prepared to
show it. He added that if there is fear of abuse, that that abuse be reprimanded;
and pointed out that because these are elected officials who have these
badges, the residents have the power to remove these abusers from office
if they desire. He stated that if a medallion is to be used in place of
the badge that is similar to the Sheriff’s Department badges, that the
Sheriff’s Department personnel be advised of this change so that there
be no confusion during an emergency or disaster.

Councilman Stern pointed out that at least
one RPV badge is unaccounted for; stated that while Mayor pro tem Clark
believes the badge to be valuable, he expressed his belief that it is
secondary to a photo I.D., which immediately tells people who you are,
and stated that it is a far superior way to identify an individual. He
stated that the comments that the misuse doesn’t happen real often still
doesn’t mean that Council should have these when a photo I.D. card quickly
identifies Councilmembers; and stated that to halt any potential for abuse
of the badge, this body should direct staff to find an alternate symbol
that can be put in place of the current badges.

Councilman Stern moved, seconded by Councilman
Long, to adopt a policy to eliminate the current badge; and, to direct
City Manager Evans to get appropriate designs for a City Council medallion.
The substitute motion ultimately superseded this motion.

Mayor Gardiner stated that if Councilman
Stern is worried about abuse of the badge, that he is free to turn his
in at any time; and stated that the ultimate arbitrator of all this body
is the voter. He stated that these badges have a history of being used;
those most elected officials throughout the nation have badges; and reiterated
his belief that both forms of I.D. are essential.

By way of a substitute motion, Mayor Gardiner
moved, seconded by Mayor pro tem Clark, to retain the current use of the
badge and to establish the appropriate protocols for the proper use of
these badges.

Councilman Long stated that he could support
a portion of the substitute motion to develop protocol for the use of
the badges; but stated that in his opinion, the difficulty with just writing
the protocol is that it addresses only the side of the question of abuse
by the holders of the badges and that it does not address the more important
side of the question: the confusion of those seeing the badges. He expressed
his belief that a badge with a medallion can be sufficiently designed
so that it is not confusing to those that see it. He stated that the newly
designed badge should include the City’s logo. In listening to all statements
by the Councilmembers this evening, he stated that he has not yet heard
a persuasive case for keeping the current badge, why the badge should
continue in a design that so closely resembles law enforcement badges
such that it can cause the type of confusion that he experienced at the
airport.

Mayor pro tem Clark expressed his belief
that the badge as currently designed is in place so that law enforcement
officials can quickly recognize it; stated that it is too easy for an
individual to falsely have an I.D. card made; reiterated that these badges
are not made up by the City, that they come from the County and are in
this shape to quickly facilitate the ability to recognize publicly elected
officials and facilitate their movement in disaster areas or emergency
situations; and noted his strong opposition for Councilman Stern to base
the new policy on bad behavior that has been experienced elsewhere in
the county and/or state.

Lieutenant John Herrera from the Lomita
Sheriff’s Station stated that the L.A. County Sheriff’s Department has
been issuing these badges to 44 contract cities for approximately 30 years;
and advised that the badge is well known within the county and the state.
In response to Councilman Long’s inquiry regarding the possibility of
altering the design, he stated that it would be possible to alter the
badges if the City decided to change.

Councilman Stern pointed out that he is
not implying that anyone on this Council is misusing the badge.

Mayor Gardiner stated that he would favor
a policy to deal with the badge’s proper use; and that if it did not work,
then he would support the removal of the badges.

City Manager Evans respectfully requested
that the Mayor appoint an ad hoc committee of two Councilmembers who would
develop a policy that can be presented to full Council for consideration;
explained that after listening to the differing opinions, staff would
be uncomfortable drafting the protocol for the proper use of these badges.

Councilman Long stated that in his opinion,
ad hoc committees are developed for purposes of communicating and gathering
information and not for formulating policy, that policy should be formulated
by the full Council.

Roll call on the substitute motion to
retain possession of the badges and to develop protocol for the proper
use of the badges carried as follows:

AYES: Clark, Wolowicz, and Mayor
Gardiner

NOES: Long, Stern

ABSENT: None

Councilman Long moved, seconded by Councilman
Stern, to split the motion. No objection was noted.

Motion to retain the badges carried as
follows:

AYES: Clark, Wolowicz, and Mayor
Gardiner

NOES: Long, Stern

ABSENT: None

Motion to establish a protocol carried
as follows:

AYES: Long, Wolowicz, Mayor Gardiner

NOES: Clark, Stern

ABSENT: None

Councilman Wolowicz questioned how staff
should proceed with the development of the protocol.

In response to the Council’s comments
and desire for staff to draft the protocol, City Manager Evans noted that
at this point, he would draft the protocol to state that it is inappropriate
for a Councilmember to use the badge when boarding an airplane; that it
is inappropriate to use it outside of this jurisdiction; that it should
only be used to cross police lines in the case of an emergency or disaster;
and he reiterated his discomfort with staff drafting this protocol.

In response to Councilman Wolowicz’ suggestion
that this body provide suggestions to include in the protocol, Mayor Gardiner
encouraged the Councilmembers to send any information that would help
City Manager Evans and staff draft the protocol; and stated that Council
will ultimately decide what protocol to adopt.

Mayor pro tem Clark suggested that staff
investigate protocols that other jurisdictions have put in place.

City Manager Evans presented staff report
and the recommendation to (1) Amend the Articles of Incorporation for
the Community Forum, Inc., to expand the purpose statement to encompass
the desired fundraising activities and to change the name of the corporation
rather than forming a separate nonprofit public benefit corporation to
raise funds for City projects; and, (2) Appoint a City Council ad hoc
committee to work on determining the purpose of the foundation, developing
the by-laws and recommending an appropriate name.

Councilman Stern stated that he would
like to get a copy of these bylaws; and noted his concern with the lack
of information he has about the existing entity.

City Manager Evans advised that this nonprofit
was formed in 1978 to publish a City newsletter that is still published;
noted that in 1997, the post office advised the City that the nonprofit
was no longer eligible for reduced postage rates; and that

the City stopped using this nonprofit
at that time. He stated that the nonprofit board is made up of three individuals
who are no longer with the City. He added that the City has been annually
filing a statement to the state and IRS to reflect that no money has been
spent since the post office stopped paying for postage of the newsletter
in 1997.

Councilman Stern noted his understanding
that if the City alters the purpose of this nonprofit, that the City may
have to go through a re-exemption process.

City Attorney Lynch stated that she would
need to double check whether the City would have to file for a re-exemption
with any alteration; and advised that the original purpose for the nonprofit
was to provide information to the City and its residents in the form of
the newsletter; and stated that those bylaws would still remain but that
the City would expand on those bylaws. She indicated that she would check
with the IRS to make sure this change is appropriately made.

Councilman Wolowicz asked that the bylaws
clearly define what the funds would be used for; and he generously offered
the services of his firm, free of charge, to do the annual filings for
the 501 (c) 3 – pointing out that he would be looking to facilitate this
for the benefit of the community.

City Attorney Lynch advised that City
Clerk Purcell has already been in contact with the board members to set
up a meeting to appoint new members to the board; and she indicated that
any individual who would be appointed to this board would have to be approved
by the City Council.

Councilman Stern moved that this process
be canceled if it will cost more to do rather than forming a new entity;
that City staff do what is necessary to get this entity into a meeting
with the City so that the board members could appoint new board members;
that once the City has control of this entity, that the articles should
be amended in some fashion to meet the purposes that Council articulates
for a nonprofit – pointing out that Council has not yet discussed any
amendments; and that Council appoint an ad hoc committee to recommend
some of those amendments.

Mayor Gardiner requested that the motion
be amended to include that Council authorize the appointment of City Manager
Evans and Director McLean as the two new board members and that the current
board members appoint them to the board so that the City would now have
control of the nonprofit going forward.

The staff report of August 3 recommended adoption of the
FY 04-05 investment policy for the City of Rancho Palos Verdes.

Councilman Stern moved to approve staff
recommendation.

Councilman Long stated that he is supportive
of staff recommendation, but urged staff to keep an eye on any changes
that might take place with the legislature that would impact this City.

Councilman Wolowicz addressed his concern
with the City having 100 percent of its funds in one area, stating that
it is not the recommended method for investing; and stated that it would
be prudent to consider some other sources for a more balanced fund.

Mayor Gardiner noted his support for considering
other sources.

Director McLean explained that this investment
policy does not preclude the City from making investments in other vehicles
other than the State’s Local Agency Investment Fund (LAIF); and advised
that the policy clearly states that the treasurer shall utilize LAIF to
the extent feasible and practical, not absolute. He explained that staff
had done informal research a year ago of other pooled funds that are similar
to LAIF, where someone else is managing the cash portfolio; and advised
that it was clear LAIF was outperforming those pooled funds by .3 percent,
which on $30 million is a substantial amount of earnings difference –
approximately $90,000. He explained that staff report indicates that staff
is conducting an informal inquiry with a couple money managers with municipal
experience; that the City’s goal is to determine – setting aside the issue
that’s been raised about eggs in one basket – whether the cost of managing
a portfolio with the professional advice of others offset against additional
earnings might be gained versus only using LAIF; and then with that information,
staff would present those findings to Council, make a recommendation as
to whether to choose a managed portfolio, what the costs would be, including
that of the money managers as well as staffing.

Councilman Long expressed his belief that
it might be appropriate to slightly modify the proposed policy wording
on page 5, third paragraph, and suggested the following wording: "The
Treasurer shall utilize LAIF or substantially comparable pooled funds
to the greatest extent feasible and practical." He questioned
whether the City needs full liquidity across the board or can the City
depart from some degree from liquidity and talk about laddering with some
of the City’s funds.

Councilman Stern stated that safety of
the funds is the most important consideration; and he questioned if LAIF
has some internal laddering.

Director McLean stated that LAIF does
stagger the term of its investments.

Councilman Long moved, seconded by Councilman
Stern, to adopt staff recommendation; to modify the proposed policy constraints
and guidelines on page 5, third paragraph, as follows: "The Treasurer
shall utilize LAIF or substantially comparable pooled funds to the greatest
extent feasible and practical."

City Attorney Lynch explained that the
City has adopted a very fiscally conservative investment policy over the
years; and stated that during the 1990’s, the City narrowed down the financial
institutions to the very largest financial institutions that had the largest
asset value. She stated that she is not opposed to Councilman Long’s suggested
language.

There being no objection, Mayor Gardiner
so ordered.

Councilman Wolowicz stated that he would
still like to see what secure alternatives there might be.

Councilman Long questioned whether the
City really needs that level of liquidity and whether the City, without
sacrificing safety or principle, could get better returns through some
diversification outside of LAIF.

Real Estate Listing Agreement. (1101)

The staff report of August 3 recommended
that Council authorize the execution of the real estate agreement with
Call Realty with the intent to sell the property located at 30678 Palos
Verdes Drive East for fair market value.

Mayor pro tem Clark stated that it may
be advantageous to keep this property in order to potentially attract
and retain top caliber talent to serve the City in the future, giving
an example of Beverly Hills providing housing assistance for its City
Manager.

Councilman Stern noted Mayor pro tem Clark’s
absence from the June 15 City Council meeting wherein this matter was
discussed at length; advised that discussion included the point that Mayor
pro tem Clark raised, but that Council determined there are risks associated
with continued ownership of this property; and expressed his belief that
the City should not be tying up public funds with this type of asset.

Councilman Long advised that this discussion
took place in closed session and that the four Councilmembers decided
to sell this property; and expressed his opinion that if the City were
to decide to maintain a house for staff, he would not be convinced that
this is the right house to offer. Because of the budget, he noted his
preference to sell this property; and stated that if circumstances change,
if the City has the adequate cash in the future, Council can at that time
consider purchasing a house.

Councilman Wolowicz stated that a lot
of ideas were discussed during that meeting; and mentioned that from his
own perspective, he is uncomfortable with governments straying too far
from their intended purpose, which is not to own this type of real estate.

Mayor Gardiner stated that discussion
took place that offering this type of compensation to a staff member could
also be a disincentive to city manager candidates, noting that this would
not allow them to build equity of their own and that it would create the
tendency to provide a smaller salary with that type of a setup. He expressed
his belief that offering a good salary will attract very qualified applicants.

Councilman Long commented on the possibility
of the City subsidizing a house loan or an equity sharing agreement.

City Attorney Lynch advised that staff
needs to establish with the former property owner whether they wish to
exercise their right to first refusal and, if so, if they wish to do it
now or when an offer comes in.

Mayor pro tem Clark stated that the Council’s
points had been well taken; pointed out that this community is getting
less affordable for workers in the public sector; questioned whether this
City is desirous of having its city manager live in the community; and
stated that the City could consider some type of housing assistance if
that were to become an issue. Mayor pro tem Clark stated that while he
agrees with what is transpiring, he pointed out that a year and a half
ago, this same issue came up wherein he was successful in convincing the
majority of Council to hold on to this property; and that had they not
held on to this property, the 6-figure net potential income from this
transaction would not have occurred.

Councilman Long moved to accept staff
recommendation, but to amend it and direct that staff determine if the
prior owner plans on exercising the first option to buy now in exchange
for 2.5 percent off the listing price. Councilman Stern seconded the motion.
There being no objection, Mayor Gardiner so ordered.

CLOSED SESSION REPORT:

City Attorney Lynch stated that with respect
to the Cox negotiations, Council gave further direction to the City’s
negotiators to try to wrap up the deal with Cox – pointing out that Councilman
Long recused himself from the Cox matter; and stated that reports were
given on the two litigation matters, but that no action was taken.

ADJOURNMENT:

At 10:59 P.M., the City Council was adjourned
on motion of Councilman Stern.